Mushedroom, Home Buyer in Marina del Rey, CA

i was looking at the 4215 Glencoe Lofts (WestEnd) formerly the G2 loft project. is this a good investment?

Asked by Mushedroom, Marina del Rey, CA Mon Jul 27, 2009

is this a good investment? i really don't want to go into purchasing a 775 sq. ft. loft for 330K or a 1200 sq. ft. 2 bdrm lot for 475K and eventually be stuck in a situation where i will never be able to sell it and make something from it in 5-10 yrs time. is this property a good buy? (prices are so low but will they ever increase enough to yield some kind of gain)

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Dorene Slavitz (213) 814-5238’s answer
Wow! I love those condo's and what a great price they are. I don't think they are a bad investment at all. IF you area thinking of selling in 5-10 years, I'm not so sure the market will correct itself that fast. You could lease your property though, leases in Marina Del Rey are in demand.
4 votes Thank Flag Link Mon Jul 27, 2009
I think it is a pretty cool place, and if you look at it based on price per square foot it is very competitive. If you look at what nearly identical units nearby are renting for, for example R2Living, it is a good deal.

Their website does not have many pictures, but the interior designer has a flickr page with some pictures.
2 votes Thank Flag Link Tue Aug 11, 2009
probably too late, but...

putting money into a house or condo is generally a bad investment. There are many reasons, but here are a few..

if the value of your property goes up, and you sell it, you made a profit . But now you dont have a place to live. Good luck trying to upgrade. All house prices rose if yours did. Also, you just lost 6 percent to the real estate agent, and you've been paying an extra 4 hundred and some dollars a month in HOA fees. Dont forget property taxes, maintenance, upgrades, etc..

With a mortgage, you pay off the interest on your loan before the principal. This is good for taxes, but the amount of principal you owe declines very slowly. We borrowed $480,000, and after 6 years of $3000/month payments, we still owe 430,000 - thats right, we have paid out about 215,000 dollars and our principal has dropped by about 50,000.

Lets compare to the stock market...

if you put a 20 percent down payment in to your house and the value of your house declines by 20 percent, you have lost all your money. If you put that same money into the stock market, and the value of your portfolio declines by 20 percent, you have only lost 20 percent of your money.

Also, with stocks, you dont pay any taxes on them while you own them, and there are no maintenance fees.

If you can comfortably afford a house, and want to own your home, then it could be the right thing to do. But you should never think of it as an investment.
0 votes Thank Flag Link Wed Aug 25, 2010
This particular block (Glencoe, b/w Maxella and Washington) is over saturated with condos and lofts. Apart from the impact on infrastructure (mind you, the whole area was an industrial zone before, with all sorts of contamination to the soil..) it's also driving prices down. That being said, there are some nice buildings there - mainly the apartment ones - don't expect any views, other than that of the neighbors, again because of the saturated building. I would avoid lofts unless you are comfortable with large spaces and little privacy... As for the realtor comments, probably true (although I'm yet to see an honest realtor who would say something was not a good buy, or that now is not the time to buy...) but remember again the oversupply of rental (some buildings were converted from condos to rentals) also drives rental prices down. I'd wait another 6-12 month.
0 votes Thank Flag Link Sat Aug 15, 2009
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